Jake Doran was arrested last week in the Queensland state city of Townsville and charged with one count of indecent treatment of a child under 16.
National broadcaster ABC said he was bailed to reappear in court on November 5.
The 26-year-old is a two-time national champion over 200m and represented Australia at two world championships and the 2022 Commonwealth Games.
"Australian Athletics is aware that an athlete has been charged with a serious offence in Townsville," the governing body said in a statement
"Based on information provided to Australian Athletics, the organisation has imposed a provisional action on the athlete."
The ban prevents him from attending any club, member association or Australian Athletics events, as well as from participating in training.
"The safety and wellbeing of all participants in our sport is paramount, and we take all allegations of this nature very seriously," Australian Athletics added.